The Square Foot

Crombie Real Estate Investment Trust (Crombie) announced that it has been assigned a DBRS Provisional Rating of BBB (low) with a Stable trend.

This is the first time DBRS has rated Crombie. In its report, DBRS noted Crombie's steady earnings growth resulting from property acquisitions from Empire Company Limited (Empire) and Sobeys Inc. (Sobeys) including properties to be acquired from Sobeys as part of the pending Canada Safeway transaction, as well as third-party vendors; the quality and defensive nature of Crombie's grocery and drugstore anchored retail properties; improving geographic diversification in urban markets; and the long term leases with Sobeys, Crombie's major tenant. DBRS also noted Crombie's track record of consistent, conservative financial management.

"Crombie is pleased to have achieved this institutional investment grade credit rating as it acknowledges the quality and growth of our national real estate portfolio and platform" said Donald Clow, FCA, Chief Executive Officer of Crombie. "Earning an investment grade credit rating from DBRS may provide Crombie with access to new sources of capital, additional liquidity and further financial flexibility which helps Crombie deliver on our long term strategy. The competitive advantage we derive from our strategic relationship with Empire and Sobeys has provided us with the opportunity to soon acquire 68 Canada Safeway locations which we expect will be instrumental in continuing our long-term strategy of building our national portfolio of grocery and drug store anchored retail properties with emphasis on Canada's Top 36 markets."